From JD Supra, Emily Bushaw, Danielle Flores, Calvin Keith, and Holly Martinez discuss new laws for Oregon employers in 2026 including one that makes property owners liable for unpaid wages of construction workers and creates a rebuttable presumption that construction workers were employees. Emily, Danielle Calvin, and Holly write:
Property Owners Liable for Unpaid Wages of Construction Workers
Effective: January 1, 2026 | SB 426
Summary: This bill makes property owners jointly and severally liable for the unpaid wages of nonunionized construction workers performing work for the property owner’s direct contractors and subcontractors. This bill does not extend liability to construction work relating to real property that is used as the owner’s principal residence or to properties with five or fewer residential or commercial units. This bill creates a rebuttable presumption that, in any action for unpaid wages, a person performing labor on a construction project is an employee rather than an independent contractor.
Action item: Property owners should review construction contracts and consider provisions that reduce the risk, such as proof of payment; the ability to withhold payment; and shifting liability for payment, defense, and expenses.
Source: New Year Brings New Laws for Oregon Employers | Perkins Coie – JDSupra